# Web Capture: Government Rolls Out New Home Care Model for Older People

**Source:** RNZ News
**Original URL:** https://www.rnz.co.nz/news/national/574631/government-rolls-out-new-home-care-model-for-older-people
**Date accessed:** 10 June 2026
**Capture type:** Full article summary

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## Headline

**Government rolls out new home care model for older people**
_Date: ~1 October 2025 (based on RNZ publication date)_

## Key Announcement

Associate Health Minister **Casey Costello** announced a new **'case mix' framework and funding model** to replace the current task-based, hourly-funded home care system.

## Why It Matters

- Current model: **task-based, paid by the hour** — e.g. medicines delivered as one function, personal hygiene as separate.
- Current model is inefficient: **~20% of the home care budget goes to travel costs** due to fragmented billing.
- New model: provides **more flexible care** responsive to individual needs rather than fixed tasks.
- Policy objective: **Keeping people independent as long as possible**.

## Rollout Plan

| Phase        | Detail                                                             |
| ------------ | ------------------------------------------------------------------ |
| **Pilot**    | **South Island** — four contracted providers                       |
| **National** | Roll out to other three Health NZ regions for national consistency |
| **Timeline** | Not specified in full                                              |

## Funding

| Item                                          | Amount                                            |
| --------------------------------------------- | ------------------------------------------------- |
| Home and community support additional funding | **$44 million** (part of $140M aged care package) |
| Aged residential care uplift                  | 4% ($96 million)                                  |
| Total annual aged care spending               | Exceeds **$2.5 billion**                          |

## Minister Costello's Comments

- "The reality is the current aged care model is out of date."
- Noted that people entering residential care have "much higher acuity needs than they used to."
- Current model doesn't fund palliative care or bariatric care needs.
- Further reforms: Health NZ working on updated contracts and better system for categorising care need.

## Sector Reaction

- **Karen Billings-Jensen** (CEO, Age Concern): Welcomed long-term reform focus. Hoped it would reduce the "transactional, time-constrained" nature of current services.

## Significance for KB

This represents the Government's main structural reform to home care. The case mix model shift from task-based funding is significant. Progress of rollout (South Island first, then national) should be monitored.

## Key Questions for Future Tracking

1. Have the four South Island providers been contracted and begun operating?
2. When does the national rollout commence?
3. Is the case mix model translating into better outcomes for older people?
4. Has travel cost inefficiency improved under the new model?

## Cross-References

- `04_Home_Care_and_Community_Support`
- `04_Home_Care_Support_and_Informal_Carers`
- `2026 - RNZ - Web Capture - Care Workers Take Health NZ to Court Over Travel Costs.md`
- Party Position Matrix: Home Care, Carers and Community Support

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_Part of the NZ Seniors Knowledge Base — automated capture_